Post on 12-May-2015
CONTENTSIndustry Structure
Company Analysis
Competitor Analysis
Consumer Analysis
Promotional Ventures
SWOT Analysis
BCG Matrix
INTRODUCTION• In 1903, first flight by Wright
brothers• Increased R&D of aircraft after
World War II: World War II saw a drastic increase in the pace of aircraft development and production.
• Deregulation in 1978: Deregulation– Entry and exit of routes and the pricing of fares were deregulated.History
• The creation of new jobs and lower fares.
• More Americans were flying so airplane load factors were up.
• There was increased competition and a wider choice for passengers
Benefits• Fully private airlines are subject to a
great deal of government regulation for economic, political, and safety concerns
• entry barriers for new airlines are lower in a deregulated market
• Greater competition• Pricing freedom• new entrants often take market
share with highly reduced ratesRegulatory considerations
TRENDS
9th Largest Aviation Market
Domestic aviation market tripled in the
past five years
Domestic market share of 20 % in May, 2011
11% increase in passenger revenue
OPPORTUNITIES
International air travel to grow by 6.6% a year
Projected growth of 12-14% in 2011-12
Airbus and ATR provides advantage
First carrier to enter Big-3 alliances
Expansion of product internationally
THREATS
44% hike in fuel costs
Rising in operating expenses
New Aviation policy to open skies to foreign
airlines
Entry of new airlines
AVIATION INDUSTRY
CONSUMER BEHAVIOR
Consumer Motivation
Consumer Connect
Brand Perception
Personal• Age • Occcupation
Psychological• Motivation• Perception
Cultural• Family
Influence• Reference
Groups
Social• Culture• Social Class
FACTORS INFLUENCING CONSUMER BEHAVIOR
Dr Vijay Mallya Chairman and CEO of Kingfisher Airlines
Launched under the brand name Kingfisher Airlines in 2003 Owned by the Bangalore based United Breweries GroupDr Vijay Mallya is also the Airlines Brand Ambassador
BRAND FLY KINGFISHER Currently has a fleet of 66 aircrafts that include airbus
A319,A 320, A 321,A330 and ATR72-500 and ATR 42-500 Operates more than 375 daily flights to 71 destinations,
with regional and long-haul international services.Serves 63 domestic destinations and 8 international destinations in 8 countries across Asia and EuropeShort haul routes- airbus A320Long haul routes- airbus A330-200Emphasize on using new & technically fit aircraft which ensures safe journey without delays or cancellation
Promotion Strategies• Aggressive advertising campaign ‘Fly the Good Times’.• Promoted through many events and advertisements.• Offered the customers a direct link to the company’s
Chairman in case of inconvenience• Hand-picked crew approved after a rigorous training
programme.• Loyalty and frequent flyer programs are also carried out• Personalised entertainment system web chat, inseat plugins
for music, liveTV with 16 channels on each seat • Better quality of service• 100 percent E ticket airline
Kingfisher has signed up the latest diva of bollywood Ms Deepika Padukone as the brand ambassador.
SEGMENTATIONTHE VARIOUS SEGMENT OF AIRLINE USERS:
Firstly ,The major users are the students ,low income group who
choose the minimum fare flight whichever it is.
The other target group is of young married
professionals (age group 20-35) with small kids and with income levels more than Rs 7 lacs per
annum
At last but not the least ,the elite corporate, business class people and
VIPs who demand privacy and high level of
security and safety.
TARGETING
Focus strategy
• Deviating from the usual flashy ads which hit with young (at heart) male fliers and the 'flying models '
• The ad for the young travelers talks about special kids meal, wide seats and games. The ad ends with an appeal to the father that " Your little prince deserves to feel like a King ".
Differentiation Strategy
• Cater to the different economic segments of the consumer base .
• Kingfisher class • Kingfisher red • Kingfisher first • Kingfisher Elite
• Kingfisher first as a business class - "butlers“ carry passengers’ bags on and off the plane.
• Kingfisher red and class as an economic airlines for “the mango people”.
KINGFISHER ELITE
• One can now travel in an aircraft reserved exclusively for him and choose where and when he wish to travel
• Tailored service to meet your requirements – ultimate flexibility
• Private and discreet service including VIP, diplomatic and head-of-state flights
• Eurocopter EC155 with a VVIP configuration
• Custom-designed luxurious interiors
BUSINESS TRAVEL
POSITIONING Not a journeyIts an “experience”.
THE Vijay Mallya –India's . Richard Branson
The “king of good times” theme
Not just a passengerAn “honored guest”
• Facebook as an advertising medium
• It helps in positioning kingfisher as people’s choice .
PEST ANALYSIS POLITICAL FACTORS • Open sky policy • FDI limits: 100% for Greenfield airports • 74% for the existing airports • 100% through special permission • 49% for airlines. ECONOMICAL FACTORS • Contribution to the Indian economy. • Rising cost of fuel. • Investment in the sector of aviation. • The growth of the middle income group family affects the aviation sector SOCIAL FACTORS • Development of cities leads to better services and airports. • Employment opportunities. • Safety regulations. • The status symbol attached to a plane travel.
TECHNOLOGICAL FACTORS • The growth of e-commerce and e-ticketing. • Satellite based navigation system. • Modernisation and privatisation of the airports. • Developing green field airports with private sector for example in
Bangalore the airport corporation limited. ENVIRONMENTAL FACTORS • The increase in the global warming. • The sudden and unexpected behavior of the atmosphere and the
dependency on whether. • Shortage of the infrastructural capacity • Tourism saturation . LEGAL FACTORS • FDI limits • Bilateral treaties • Airlines acquisitions and the leasing cost.
Suggestions
• Reduce the labour cost • Simplify the flight operations • Offer more transparent pricing • Get smart on fuel • The process of acquiring spice jet if complete
would make kingfisher the largest player in the aviation industry
• Different modes of pricing should be taken care of.
SURVEY
BRAND IMAGE
Airlines
KingfisherIndian AirlinesJet AirwyasIndigo
Conversion Rate
KingfisherJet AirwaysIndian AirlinesIndigo
Main Driver
Price
Service
Offers
Brand Image
Consumer Perception
Price
Servi
ce
Promotional
Offers
Brand Im
age
Conection to
Consumers
0%10%20%30%40%50%60%70%80%90%
100%
IndigoIndian AirlinesJet AirwaysKingfisher
USER
S
•Grooming and Present Ability•Most high-end domestic carriers•Exudes an air of luxury•Marvelous service
NON
USER
S
•Trade off between extra expense and high standards
PresentStrategies
spunky, well-done interiors
and trained airhostesses.
beer tagline of "The King of Good Times" the theme of "Fly the Good
Times" is given to KFA.
Kingfisher flying face of the month'
in-flight silent auctions
exuberant, youthful and
fast-paced image is
leveraged
Recommendations
lowering the prices of their
tickets
Increase advertising expense
celebrities for endorsements
like Milind Soman / Ranbir Kapoor who are
youth iconsintroduce late night flights
between metros
COMPETITON
COMPARISON OF KINGFISHER TO OTHER PLAYERS
•Priced lower than Indian airlines, yet offer a great flying experience.•Interiors and food definitely better compared to other airlines.•Captured a 27.6% market share last year in comparison to Jet-25.2% and Air India-17.2%.•Targeted frequent fliers •Passengers who enjoy the luxuries of life and have a bent towards flamboyancy.
PORTER’S MODEL
SWOT ANALYSISStrength•Strong brand value and reputation in the minds of customers•Unmatched in-flight service•Route rationalization•First airline to have a full new fleet of airbuses•Exclusive terminal share deal
Weakness•Highly priced for the service offered•Yet to break even•High attrition at top brass
Opportunities•Expanding tourism industry•Under penetrated domestic market•International market•Untapped air cargo market
Threats•Competitors•Infrastructure issues•Fuel prices•Economic slowdown
TARGE
TING
•Young married professionals with small kids•Income more than Rs 7 lakhs p.a.•Commute between Tier 1 and Tier 2 cities•Hard core loyals
POSITIO
NING
•Flying with Kingfisher is an experience in itself•It is not just selling tickets per say but also selling “Experience”•Commute faster with entertainment
SEG
ME
NTATION
•Niche Marketing: Talks with Goa Govt.S•Partnering with premium hotels like Park Hotel.
POSITIONING Not a journeyIts an “experience”.
THE Vijay Mallya –India's Richard Branson.
The “king of good times” theme
Not just a passenger.An “honoured guest”
4PS OF MARKETING
A PREMIER PRODUCT FOR THE INDIAN FLYER
Strong Kingfisher Brand
Diversified Network
Monopoly Destination
Strong Kingfisher Brand •High brand salience & preference in the minds of Indian consumer
Monopoly Destinations •Highest exclusive stations amongst private carriers
High Service Quality •Premium business class product, well trained young staff
Diversified Network •Well spread on business and leisure routes
POWERFUL PROMOTION THE STRENGTH OF KINGFISHER
POP AND POD